Retail sales have recovered from a sharp fall in February, according to data released yesterday by the Central Statistics Office (CSO).

Sales by volume rose 0.6 per cent in April on a seasonally adjusted basis which, on top of a 1.1 per cent rise in March, offset most of February's 2.5 per cent decline.

Annual growth in retail sales rose to 7.5 per cent in April, from 7.4 per cent and 6.6 per cent in March and February respectively.

According to analysts, this was caused by maturing SSIAs. One analyst predicted that sales growth would moderate once SSIAs have ceased to mature.

"A glance through the categories makes it clear that SSIAs have driven sales of goods. Durable goods, DIY equipment and clothing and footwear were to the fore," said Rossa White of Davy stockbrokers yesterday.

More detailed CSO figures show that footwear and leather goods sales rose annually by 33.2 per cent, while textiles and clothing goods rose 25.5 per cent.

Strong growth was also evident in sales of goods related to households. Hardware, paint and glass products rose 19.2 per cent, and electrical products by 11.9 per cent.

Motor sales performed poorly, however, falling by 4.4 per cent in the month. "The motor trade, until April at least, is conspicuous by its failure to grow at anything remotely like the rates of 1997 to 2000," said Ulster Bank chief economist Pat McArdle yesterday.

Bar sales also performed poorly, falling 0.8 per cent in the month. This continues a declining trend which brought sale volumes in the sector to 4.9 per cent lower than April 2006.

Alan McQuaid, of Bloxham stockbrokers, said retail sales growth would contribute significantly to this year's economic growth rate before moderating next year.

"The absence of the impact of maturing SSIA accounts, together with some moderation in the rate of increase in earnings and employment, is likely to result in some easing in the rate of growth in consumption expenditure next year."